Mitsubishi Motors (MMC) is to start assembling its Outlander crossover SUV in Europe next year, freeing up Japanese plant capacity to build more new Lancer models.
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Mitsubishi Motors Europe (MME) spokesman Daniel Nacass said the CKD assembly operation at the automaker’s regional production hub Netherlands Car BV or NedCar in Born was expected to build about 20,000 units in 2008 for MME markets in continental Europe and the UK.
This excludes Russia and Ukraine which are no longer under the MME umbrella and will continue to source their Outlanders from Japan.
Nacass said full-year Outlander output at Nedcar was expected to average 30,000 in a full year. MME now plans to assemble the model there until the end of its life cycle.
He noted that Nedcar’s capacity (full manufacture of MME’s Colt three- and five-door hatchback lines) since the end of Smart Forfour production there was around 100,000 units a year and that it built about 81,000 in 2006. The additional 30,000 units of Outlander CKD assembly would bring the plant to full capacity.
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By GlobalDataNacass said the Outlander production transfer was “a sales and marketing” decision as there was “not enough capacity in Japan”. The shift would free up 30,000 units a year of capacity in Japan primarily for the redesigned Lancer sedan which was selling above target in its key markets, particularly the US. It was launched in Europe at last week’s Frankfurt motor show and goes on sale here later this year.
The Outlander had originally been expected to account for about 113,000 units a year but was now running at about 150,000 annually, Nacass added. Mitsubishi also builds 30,000 variants a year for PSA’s Peugeot and Citroen brands.
MMC builds the Outlander at its Nagoya Plant in Okazaki, Aichi Prefecture and the PSA Peugeot Citroën derivatives at its Mizushima Plant in Kurashiki, Okayama Prefecture. As production of European Outlanders shifts from Nagoya to NedCar, production of the PSA models will move from Mizushima to Nagoya.
This will free up Mizushima capacity for more Lancers.
Graeme Roberts
